Priced Below Replacement Cost

• This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost, at roughly $46,667 per key.

• Limited coastal sites, high construction costs, and windstorm building standards keep new development out of the Corpus Christi and Padre Island market. No new economy rooms are being added, and the existing stock is steadily converting into other brands or out of service altogether.

Stable Rooms Revenue Averaging $1,629,054 over the Past Five Years

• The hotel generated average annual rooms revenue of $1,629,054 from 2021 through 2025, demonstrating durable demand across the pandemic recovery and two hurricane seasons.

• Rooms revenue equated to $1,489,178 in 2025, and the hotel has cleared $1.45 million in each of the past five years without a single down year below that level.

Three Consecutive Years of Occupancy Growth and Market-Leading Penetration

• Occupancy has increased in each of the past three years, rising from 59.1% in 2023 to 61.4% in 2024 and 64.8% in 2025, and reaching 71.0% in the year-to-date period through July 2026.

• Per the July 2026 STR Trend Report, the hotel ranked second of five competitive hotels in occupancy, registering a 110.5% occupancy penetration index and a 106.3% RevPAR penetration index in the year-to-date period through July 2026. The hotel has held the No. 2 occupancy rank in 15 of the past 18 months.

Ideal Opportunity for an Owner/Operator, with an Onsite Owner's Apartment

• The property contains a two-bedroom, two-bathroom owner's apartment, allowing new ownership to live on site and exercise direct day-to-day oversight. The apartment occupies two guestrooms that are currently held out of the inventory. No structural modifications were made to create it, and both rooms can be returned to revenue-generating inventory at minimal cost. The hotel has been underwritten as a 120-key asset throughout, in both the historical operating statements and the pro forma.

• The 120-key count and economy positioning align with a hands-on owner/operator, offering the ability to increase both revenue and net operating income (NOI) flow-through. The hotel asset is offered fully unencumbered by a management agreement.

Rate Upside for a Hands-On Operator

• The hotel wins occupancy but prices below its market. For the trailing-twelve-month (TTM) period ended July 2026, the hotel achieved an occupancy penetration of 106.3%, while its ADR penetration level slipped to 99.4%, down from 103.7% at year-end 2025. As recorded, the hotel has been trading rate gains for higher occupancy levels.

• The hotel's TTM ADR of $53.04 sits 13.1% below the broader Corpus Christi economy-chain segment’s average of $61.02. Holding occupancy at its current 67.3% and pricing to that segment would produce rooms revenue of approximately $1,723,000, an increase of roughly $225,000.

• The hotel itself achieved an ADR of $65.61 as recently as 2023. Rate recovery, not incremental demand, is the primary lever available to new ownership.

Excellent South Side Location Among Medical, Education, & Military Demand Generators

• Corpus Christi Medical Center Bay Area is a 152-bed, Level II trauma center that sits directly across South Padre Island Drive from the property, generating consistent medical, patient-family, and traveling-clinician demand.

• Texas A&M University-Corpus Christi, serving more than 11,000 students, is located within two miles of the property, and Del Mar College's Windward Campus is just over one mile from the property. Naval Air Station Corpus Christi, home to the Chief of Naval Air Training, is four miles east.

• The beaches of Padre Island and Mustang Island are an eight-mile drive southeast via South Padre Island Drive, and La Palmera Mall, the region's dominant retail center, is a two-mile drive from the property.

Continued Growth and Investment Across the Corpus Christi Market

• In June 2026, the Port of Corpus Christi entered exclusive negotiations with DP World to develop and operate a container terminal, which would add containerized cargo capability to the nation's largest crude-oil export gateway and broaden the region's industrial employment base.

• The Corpus Christi Ship Channel Improvement Project was completed in June 2025, removing the draft limits that had constrained larger vessel calls. The region's refining and petrochemical base, including Valero, CITGO, Flint Hills Resources, and Occidental Petroleum, continues to generate steady business-transient demand across the Coastal Bend.